EURUSD: Looks To Trade Towards The 1.5000 Level & Beyond
EURUSD - Risk continues to build to the upside having halted its corrective declines initiated off the 1.5062 level. The current price development is coming on the back of a turn ahead of its rising LT trendlinedrawn off the 1.2456 level. The mentioned strength has taken back half of its declines from 1.5062 to 1.4626 and suggests that a follow through higher could seen the coming. This view comes with one caveat which is EUR's present shaky hold above the 1.4844 level must be solidified to validate our upside scenario and bring further gains towards its psycho level at 1.5000 ahead of its YTD high at 1.5062. A firm break above there will resume its MT uptrend and open the door for additional gains towards the 1.5082 level, its Aug 10'08 high and then its 1.5283 level, its May 04'08 low. However, should EUR fail to hold above the 1.4844 level , downside weakness could develop towards the 1.4670 level where its MT rising trendlineis currently residing. We envisage a cap at this level to be seen thereby pushing the pair back up. Further down, support extends towards its Oct 02'09 low at 1.4479 with a snap below there bringing its Aug'05'09 at 1.4446 into focus. Overall, EUR retains its medium term uptrend but it is now required to clear the 1.5000 and the 1.5062 levels to trigger the resumption of that trend.